Thursday, November 02, 2006

Winning Trade on CKFR

Dear Options Traders :

Paper traded 5 contracts of CKFR Nov 45 Put bought at $3.40 on 24 Oct 2006 and after earnings announcement sold them at prices of $7.80, $7.90 and $8.00 respectively.

Reason for buying Put : Understood that if the transaction volume did not improve this quarter (the decline in transaction volume last quarter resulted in the share falling -$7.00 on 2 Aug 2006 after earnings announcement) the share might follow suite this time.

On 24/10/06 (Tuesday) after-market-close, CKFR reported earnings of beating EPS by $0.02 for quarter Q1 ended Sep 2006 but guided Q2 EPS & Revenue below consensus. CKFR gapped down $5.49 after the announcement. On 25/10/06, CKFR dropped $6.34 to $37.21 by 9.38am EST.

The above (gapping analysis) was one of the technique taught by Dr Clemen Chiang to trade equity options when I attended the Live Freely Options Trading Seminar Workshop (Singapore).

You can take a look at my review of the Live Freely! Seminar HERE.

If you've managed to find out about the Live Freely! Seminar from my stock options trading blog and subsequently sign up for it, I hope you could do me a kind favour and mention Mr Tony Chai from Batch 14 as the referrer. Thank you for your kindness.

Currently, I'm still working hard to achieve profitable trades consistently.

Wishing you Profitable in your Trading too.

Yours Sincerely,

Tony Chai